Reverse for purchase
Buy the right-sized home — without taking on a payment.
It's a common move from the family house to the easier-to-keep one: pair your down payment with a reverse advance on the new home, and right-size without a monthly mortgage payment following you in.
How the purchase version works
1. Sell (or keep) the family house
Most purchase files start with a sale: the equity from the old home becomes your down payment on the next one.
2. The reverse advance covers the rest
Instead of a conventional mortgage with a monthly payment, a reverse mortgage on the new home tops up your down payment — sized by your age, the property, and its location.
3. Move in, keep your cash, skip the payment
You own the new home, you keep more of your sale proceeds in the bank, and there's no required monthly payment — the loan is repaid when you eventually sell or leave.
Everything that's true of a standard reverse mortgage stays true here: homeowners 55+, tax-free advance, no required monthly payments, you stay the owner, and the no-negative-equity guarantee protects you and your estate. The advance is commonly up to about 55% of the home's value depending on age and location — model your scenario with the calculator.
Who this move fits
- The family house is too big, but a smaller home in the right neighbourhood still costs real money
- You want to keep sale proceeds invested or in reserve instead of sinking every dollar into the next house
- You don't want a mortgage payment — or wouldn't pass the stress test to get one
- Moving closer to kids and grandkids matters more than maximizing the estate
The honest caveats
- Interest still compounds. No payment doesn't mean no cost — the balance grows unless you choose to pay the interest monthly.
- Closing costs apply — legal, independent legal advice, and the appraisal, just like any reverse file.
- A conventional mortgage might still win. If your income qualifies comfortably, we price that option too and show you both, in writing.
Thinking about the next home?
Tell us the home you're eyeing, your age, and your down payment. We'll show what a reverse-for-purchase covers, what a conventional mortgage would cost instead, and our honest recommendation — in writing.
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